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Dividend Futures

Posted: Sat Oct 15, 2016 7:15 pm
by autokor
Looking At the sx5e divfutures I See lower values at the Far away contracts . What could be the Reason for this . SPx div Futures are upward sloaping . Is uncertainity about the Future Index members a possible reason ?

Dividend Futures

Posted: Mon Oct 17, 2016 10:19 am
by granchio
Supply-demand situation in derivatives and structured products:

as a brutal semplification, in EU the banks are constantly buying the equivalent (from a div PoV) of longer term puts, in US selling them.

Dividend Futures

Posted: Mon Oct 17, 2016 11:47 am
by yanko
An explanation I keep hearing is hedging of structured products (think knock-out certificats, etc.) on the part of EU banks.



These products aren't particulary popular in the US from what I hear, so no such effect in SXP div futures.